During the trading session on Friday, Ethereum (ETH) witnessed a 4% surge, which led to a reclaiming of its previous range-lows from December. This move indicated a potential continuation of the recovery phase for the digital asset.
Interestingly, despite this positive development, Ethereum saw a decreased level of interest compared to the past 12 months during the recent holiday-driven sell-offs.
Over the same timeframe, Ethereum saw a decline from above $4000 but managed to stabilize within a narrow range above $3300 towards the end of December. This raises the question of whether the ongoing recovery will persist following the asset’s recapturing of its December range lows.
ETH: Is $4000 the Next Milestone?
Analyzing the 12-hour chart, Ethereum surged above crucial moving averages such as the 20-day, 50-day, and 100-day EMA. The breakout on Friday pushed the price above $3600 and established a bullish market structure.
This development potentially positions Ethereum for further recovery, at least in the immediate future.
The short-term bullish targets include the mid-range around $3800 and the upper threshold of $4000. Key indicators like the 12-hour chart RSI and CMF remained above significant median levels, indicating strong demand and increased capital inflows.
If the positive momentum continues in the coming days, Ethereum could test price levels at $3800, $4000, or potentially higher. However, a bearish scenario would unfold if the price falls below $3500.
Furthermore, historical data on Ethereum seasonality points to a positive trajectory. The first quarter traditionally boasts strong performance, with an average gain of 83%. Specifically, January and March have historically been the strongest months within Q1, recording returns of around 21% and 22%, respectively.
If past patterns are any indication, Ethereum might experience significant growth in January. On a monthly basis, key resistance levels are identified at $3800, $4000, and $4100, while the critical support level remains at $3300.
In the event of a surge driven by liquidity flow, potential targets to watch for include $3800, $4000, and $4300.
To sum up, the recent breakout in Ethereum could pave the way for sustained growth, especially if historical trends repeat in 2025, bringing price targets of $3800 and $4000 into play. Nevertheless, a swift downside correction might find support at the key short-term level of $3300.
Disclaimer: The views expressed in this article should not be construed as financial advice. They represent the author’s personal opinions and analysis.